---
kind: "section"
citation: "5 C.F.R. § 837.701"
title: "5"
number: "837.701"
heading: "Offset from supplemental annuity."
url: "https://uscodex.org/cfr/5/837.701"
---

# §837.701. Offset from supplemental annuity.

- (a) OPM will reduce the supplemental annuity of an individual who has performed CSRS-Offset service, if the individual is entitled, or on proper application would be entitled, to old-age benefits under title II of the Social Security Act.
- (b) The reduction required under [paragraph (a)](#a) of this section is effective on the first day of the month during which the reemployed annuitant—
  - (1) Is entitled to a supplemental annuity under this part; and
  - (2) Is entitled, or on proper application would be entitled, to old-age benefits under title II of the Social Security Act.
- (c) Subject to paragraphs [(d)](#d) and [(e)](#e) of this section, the amount of the reduction required under [paragraph (a)](#a) of this section is the lesser of—
  - (1) **The difference between—**
    - (i) The social security old-age benefit for the month referred to in [paragraph (b)](#b) of this section; and
    - (ii) The old-age benefit that would be payable to the individual for the month referred to in [paragraph (b)](#b) of this section, excluding all CSRS-Offset wages as a reemployed annuitant, and assuming the annuitant was fully insured (as defined by section 214(a) of the Social Security Act); or
  - (2) **The product of—**
    - (i) The old-age benefit to which the individual is entitled or would, on proper application, be entitled; and
    - (ii) **A fraction—**
      - (A) The numerator of which is the annuitant's total CSRS-Offset service as a reemployed annuitant, rounded to the nearest whole number of years not exceeding 40 years; and
      - (B) **The denominator of which is 40.**
- (d) Cost-of-living adjustments under [5 U.S.C. 8340](/usc/5/8340.md) occurring after the effective date of the reduction required under [paragraph (a)](#a) of this section will be based on only the supplemental annuity remaining after reduction under this subpart.
- (e) The amounts for paragraphs [(c)(1)(i)](#c-1-i), [(c)(1)(ii)](#c-1-ii), and [(c)(2)(i)](#c-2-i) of this section are computed without regard to [subsections (b) through (1)](/cfr/5/203.md?p=b..1) of section 203 of the Social Security Act (relating to reductions in social security benefits), and without applying the provisions of the second sentence of [section 215(a)(7)(B)(i)](/cfr/5/215.md?p=a-7-B-i) or section 215(d)(5)(ii) of the Social Security Act (relating to part of the computation of the social security windfall elimination provisions).
- (f) OPM will accept the determination of the Social Security Administration, submitted in a form prescribed by OPM, concerning entitlement to social security benefits and the beginning and ending dates thereof.

## Notes

### Authority

Authority: 5 U.S.C. 8337, 8344, 8347, 8455, 8456, 8461, and 8468; and section 302 of Pub. L. 99-335, June 6, 1986, as amended.

### Source

Source: 58 FR 48266, Sept. 15, 1993, unless otherwise noted.